A layoff notice from Rivian starts five time-sensitive clocks that most employees don't know about. Rivian announced on June 16, 2026 that hundreds of production and operations workers would be cut as the company restructures costs ahead of its R2 vehicle launch. If you're in that group, the decisions you make in the next 60 days will shape your financial cushion, your health coverage, your equity outcome, and your tax bill. Here's what each deadline is, why it matters, and what to do about it.
- File for Illinois unemployment today at ides.illinois.gov. Benefits don't backdate.
- You have 60 days from your last coverage date to elect COBRA or enroll in a Marketplace plan.
- If you're 40 or older, you have 45 days to review your severance agreement before signing.
- If you have ISOs, you have 90 days from your last day to exercise them at favorable tax rates.
- Roll over your 401(k) directly. If you take a check instead, you have 60 days to redeposit it.
What happened
Rivian announced on June 16, 2026 that it was laying off hundreds of production and operations employees. The company cited cost restructuring and ongoing preparations for the R2 launch. Severance terms have not been publicly disclosed.
File for unemployment in Illinois today
Unemployment insurance is a state-run program that replaces a portion of your wages while you look for work. The rule that catches most people off guard: Illinois pays benefits starting from the week you file, not from your last day on the job. File late, and you lose that income permanently.
File online at ides.illinois.gov. You'll need your Social Security number, employment history for the past 18 months, and information about your separation from Rivian. Illinois requires identity verification, so have a government-issued ID ready before you start.
Illinois's maximum weekly unemployment benefit is $595 (without dependents), according to the Illinois Department of Employment Security. Your actual payment depends on your prior wages, so it'll likely be less than the cap. Illinois also has a waiting week, meaning the first week of your claim is typically unpaid. That doesn't change anything about when to file. File today.
If you worked in multiple states recently, contact those states' workforce agencies as well. Your situation may qualify you for a combined wage claim.
Use our post-layoff checklist to track unemployment filing alongside every other deadline covered here.
What should you do about health insurance?
Health insurance is often the most urgent financial decision after a layoff, because two separate 60-day windows start running the moment you lose employer coverage. Miss both, and you're uninsured until the next open enrollment period.
COBRA lets you keep your existing Rivian health plan, including your current doctors and networks. The catch is cost. You take over the full premium, including the share Rivian was paying, plus a 2% administrative fee. The average COBRA premium for individual coverage in 2026 is $703 per month, according to KFF's employer health insurance data. Family coverage runs higher. COBRA's one real advantage: the election is retroactive. You can wait until you actually need medical care and then elect coverage, as long as you're still within the 60-day window. That window runs from your qualifying event date or the date you receive your COBRA notice, whichever is later, per DOL rules.
The Marketplace is often the cheaper option, especially if your income drops significantly this year. Losing job-based health coverage triggers a 60-day Special Enrollment Period on healthcare.gov, according to healthcare.gov's SEP rules. You can compare plans now and may qualify for income-based subsidies depending on your projected income for 2026.
The right choice depends on your health needs and your income for the rest of the year. If you expect high medical costs, COBRA keeps your existing providers without any network disruption. If you're generally healthy and your income will be lower, the Marketplace may save you several hundred dollars a month. The Decision Calendar runs this comparison for you based on your state and income level.
Review your severance agreement before you sign
A severance agreement is a legal contract. In exchange for a payment, you typically waive certain legal rights, often including the right to bring age discrimination claims. The Older Workers Benefit Protection Act (OWBPA) sets minimum protections for employees 40 and older.
Because this is a group layoff, the OWBPA review window is 45 days, not the standard 21-day individual window, according to the EEOC. That means Rivian must give you 45 days to consider the agreement before you're asked to sign. You also have 7 days after signing to revoke your acceptance, regardless of what the document says. These rights exist whether or not the agreement mentions them.
During that 45-day window, read for these things:
- The specific claims you're releasing, including whether they cover future claims
- Any non-compete or non-solicitation clauses and how broadly they're written
- Whether the payment covers wages, bonuses, or commissions still owed to you
- What happens to your benefits, including equity, if you sign
Rivian hasn't disclosed severance terms publicly. That doesn't mean the offer is fixed. Severance is negotiable more often than HR suggests. If the amount feels low given your tenure or role level, ask for more. The worst they can say is no.
Do you have equity or stock options?
Rivian is publicly traded, and equity grants are common across production and operations roles at the company. Your termination paperwork should specify what happens to your grants. If it doesn't, get that information from HR before your last day.
RSUs (restricted stock units) that haven't vested yet typically forfeit on your termination date. Vested RSUs that have already settled as Rivian shares are yours. If you have RSUs that are vested but not yet settled, check your equity plan documents for the settlement timeline and whether it changes on separation.
ISOs (incentive stock options) are the most time-sensitive. Under IRC Section 422, you have 90 days after your termination date to exercise ISOs and keep their favorable tax treatment. After 90 days, they automatically convert to non-qualified stock options (NQSOs), which are taxed as ordinary income at exercise rather than at the lower capital gains rates available to ISOs. If Rivian's stock price is above your strike price, this 90-day window is a hard deadline.
Exercising ISOs also carries potential Alternative Minimum Tax (AMT) exposure. The spread between your strike price and the fair market value at exercise is an AMT preference item. Run the tax math before you act. Exercising a large block of ISOs in a low-income year can work in your favor; doing it without modeling the AMT impact can result in a surprising bill. The Decision Calendar calculates your exercise cost and models the tax difference between acting before and after key deadlines.
What about taxes on your severance?
Severance pay is ordinary income. The IRS treats it as supplemental wages, which means Rivian withholds at a flat 22% federal rate on the first $1 million, according to IRS Publication 15. That withholding happens automatically.
The 22% rate isn't always enough. If your total income this year, including pre-layoff wages, severance, and any investment income, puts you in a higher tax bracket, you'll owe the difference in April. The gap can be significant depending on your salary and the size of your severance payment. Set aside the difference now rather than discovering it at tax time.
The Q2 2026 estimated tax deadline was June 15. If your severance pays out after that date and federal withholding isn't covering your full liability, the next quarterly deadline is September 15, 2026. You can calculate whether you owe a Q3 payment using IRS Form 1040-ES. Making that payment by September 15 avoids an underpayment penalty on your 2026 return.
What happens to your 401(k)?
Your 401(k) balance belongs to you. Rivian can't reclaim it. But what you do with it after separation affects how much of it you actually keep.
You have three options:
- Leave it in the Rivian plan. This is allowed in most cases, though some plans require distributions for small balances. Check the plan documents for any balance minimums.
- Roll it to an IRA. A direct rollover sends the money straight from the Rivian plan to your IRA custodian. No taxes, no penalties, no withholding. This is almost always the cleanest option.
- Roll it to a new employer's plan. If you start a new job quickly, you may be able to move the funds into that plan instead.
If you take an indirect rollover, meaning the plan sends you a check made out to you, you have 60 days to deposit those funds into a qualifying retirement account, per IRS rollover rules. The plan withholds 20% for taxes automatically on an indirect rollover. You have to make up that 20% out of pocket at deposit time to avoid paying taxes on the withheld amount. If you miss the 60-day window, the full distribution becomes taxable income, plus a 10% early withdrawal penalty if you're under 59 and a half.
The direct rollover sidesteps all of that. When your plan administrator asks how you want the funds, say "direct rollover" and provide your IRA account details. It takes a few extra minutes to set up and saves you real money.
Deadlines and rules described here reflect federal law and general state guidelines as of the article date.
The Decision Calendar
The deadlines above apply whether or not you are tracking them. The Decision Calendar from Layoff HQ is not just a reminder tool. Based on your last day worked, your state, your age, and whether you have equity, it calculates: the COBRA vs. Marketplace cost comparison for your income level, your severance tax exposure and estimated Q2 or Q3 payment due, your equity exercise costs and the tax difference between acting before and after key deadlines, and your financial runway. Then it tracks every deadline on a single personalized calendar and sends SMS and email reminders before each one closes. One-time purchase. No subscription. 14-day money-back guarantee.
Build your free Decision Calendar or see pricing for the full personalized version.
- Illinois maximum weekly unemployment benefit: ides.illinois.gov/unemployment/eligibility.html
- COBRA election window (60 days): dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra
- Average COBRA individual premium 2026: KFF Employer Health Insurance Data
- Marketplace Special Enrollment Period (60 days): healthcare.gov/sep-list
- OWBPA 45-day group review window and 7-day revocation: eeoc.gov/laws/statutes/adea.cfm
- ISO 90-day post-termination exercise window: IRC Section 422; IRS Publication 525
- Federal supplemental wage withholding rate (22%): IRS Publication 15
- Q3 2026 estimated tax due September 15: irs.gov estimated tax schedule
- 60-day indirect rollover rule: IRS Rollover Chart